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<br />StJeb Brothers. Inc. - Well Augmentation Project <br />March 25-26. 2003 <br /> <br />Agenda Item 24b <br /> <br />wells. By generating its own augmentation water SBI hopes to protect itself from possible . <br />curtailment and help GASP strengthen its coverage in the same area of the river. The recharge <br />system will be located on the land owned by adjacent neighbors, who are cooperating in the project, <br />and providing permanent easements. <br /> <br />Feaslbllitv Studies <br /> <br />A preliminary feasibility study has been completed by engineer Brent Nation, P.E. of Fort Morgan, in <br />accordance with CWCB guidelines. The study includes an assessment of alternatives available to <br />generate augmentation alternatives for SB!. <br /> <br />Prolect SDonsor . Stieb Brothers Inc. <br /> <br />SBI is a privately incorporated farm business, with seed sales and aeattle feeding operation. The <br />corporation was established in 1972 by four members of the Steib Family, and is solely controlled <br />and operated by the Stieb family. Current officers are Basil Stieb, President; Leo Stieb, Sr., Vice <br />President; and Margaret Ann Stieb, Secretary. The corporation is registered with the Colorado <br />Secretary of State, in good standing. The corporation is affiliated with a sister company, Stieb <br />Land Company, LLP, a limited liability partnership, which holds some of the assets of the Stieb <br />operation, including the land to be used for collateral for the CWCB loan. <br /> <br />Water Riahts <br /> <br />SBI currently has decrees on the 5 wells used for irrigating their farm. These wells are augmented <br />through 14 units of GASP. The proposed 2 new recharge wells, and the conversion of an existing . <br />well to an augmentation well, will require a new water right and are currently being sought. This <br />new recharge water right will be for a maximum of 13.4 cis with an average annual yield of 6000 <br />acre feet. <br /> <br />Proiect DescrlDtion <br /> <br />Three alternatives to generate augmentation supply for SBI were considered in the feasibility study: <br /> <br />1. No-action alternative. <br />2. Purchase a senior water right and use it for augmentation. <br />3. Construct recharge ponds filled using recharge wells. ($202,000) <br /> <br />Alternative 1, No-action, was not considered acceptable due to the continuing changes in the water <br />community as a result of extreme drought conditions.' Supplies currently used augment the 5 SBI <br />wells are entirely secured by GASP on a one-year lease basis. Even though GASP has provided <br />augmentation coverage for the last 30 years there is no certainty of total augmentation coverage <br />with GASP. If any of the leases are not renewed, or cannot be renewed due to drought conditions, <br />the SBI could not operate their wells. This would bean annual loss of approximately 1,400 acre- <br />feet, leading to major loss of crops. <br /> <br />Alternative 2, Purchase a senior water right and use it for augmentation, while a common option for <br />Front Range communities, this was not considered financially viable for SB!. A recently available <br />senior water right for sale in their area would have come with the purchase of a farm controlling the <br />Ramsey Ditch. The Ramsey Ditch isa 12 cis direct ~Iow right with a date of August 1894. In order to . <br />obtain the water right, the entire farm would have had to been purchased at a price of $1.25 million. <br />This price does not even include the legal fees associated with converting the water right over to <br />augmentation. use. <br /> <br />Page 2 of 6 <br />